“That’s like saying the reason your household is in financial stress is because you got a parking ticket last year,” said Steve Beck, founder of cg42, a management consulting firm that specializes in brand vulnerability.

Experts said the bigger fallout from the breach is the way it has distracted management from doing what the company does best — selling goods.

Jim Noble is an instructor with the New York Institute of Finance on cybersecurity issuess amd advises senior IT and board-level executives, said “significant” internal distraction is the biggest consequence of a breach like Target’s.

Target Brands, Inc.

Target CEO Brian Cornell

“Everyone in the management ranks has to dig deep to make sure there is not a reoccurrence,” said Noble. “And inevitably it causes an over-reaction.”

As Target’s data breach was carried out through one if its business partners that had access to its network, the company is probably closing down similar access points and turning the company into a fortress.

“Organizations cannot work like this,” said Noble.

Target is known for unique co-branding deals with well-known personalities that offer affordable exclusivity to shoppers.

“You have seen a brand that has lost its way,” said Beck from cg42. “And the end result is poor performance.”

Wal-Mart, known for its super-stores, is currently working to roll out a smaller store concept.

“We believe that the ongoing emergence of e-commerce is devaluing the impact of breadth of assortment in-store for general merchandise retailers,” said Goldman Sachs analysts in a research note.

“Consumers appear more focused on some combination of value and convenience. Narrow-assortment retailers, including dollar stores, drug stores, and warehouse clubs, are taking share from broad-assortment retailers, namely Wal-Mart and Target.”

Target’s expansion into Canada is another bugbear. The company said Canada sales will be softer-than-expected in the second quarter and that it is still spending money to clear inventory. The company will report second-quarter earnings on Aug. 20.

“There has to be some interesting rabbits pulled out of hats to make the holiday season interesting,” said Beck. “Turning that around takes time.”

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About Behind the Storefront

Behind the Storefront is a blog about all things retail. It’s aimed at investors, shoppers and anyone else with a passion for learning about what drives consumer behavior. Hosted by Andria Cheng, Behind the Storefront will cover the business, brands and shopping behavior that’s behind some of the biggest companies, and largest employers, in the world. You can reach Andria at Acheng@marketwatch.com.